The Bangladesh government has put forward a comprehensive plan to provide significant tax benefits to the semiconductor industry in the country. This includes a reduction in import duties on essential raw materials to just 1 percent until the middle of 2031, a move outlined in the fiscal year 2026-27 budget.
Semiconductors play a vital role in modern electronics, driving various products such as smartphones, computers, industrial machinery, and vehicles.
As per the proposal, raw materials essential for semiconductor and chip development, testing, and packaging would be exempt from regulatory duty, supplementary duty, value-added tax, and advance tax. A minimal import duty of 1 percent would be maintained under these new measures, which are intended to remain effective until June 30, 2031.
During the budget presentation, Finance and Planning Minister Amir Khosru Mahmud Chowdhury highlighted, “Every year, our universities produce many qualified engineers, and many more are contributing globally as part of the Bangladeshi diaspora.”
The envisioned incentives aim to capitalize on the country’s talented engineering workforce, foster job creation, and bolster export-driven economic growth, according to the minister.
